cost-benefit analysis

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Cost-benefit analysis

A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to costs; the practical embodiment of discounted cash flow analysis; a useful technique for making transparent the benefits of upfront investments in sustainable design features or technologies.

cost-benefit analysis

a technique for appraising the total economic costs and benefits (and ideally the total social costs and benefits expressed as economic costs) arising from any economic and social activity, especially new projects. Hitherto, the technique has been mainly used to appraise new, large, public projects. But, in an increasingly ecologically conscious era, the proposal now is that many more existing economic and social activities should be subject to full cost-benefit analysis, with many more costs, e.g. environmental, also included to a fuller extent than previously Cost-benefit analysis is far from being a straightforward technique, however, and much depends on the assumptions on which a costing is made. Careful attention has always to be given to the range of external costs and the range of benefits to be included in the calculations, as well as to the basis on which these can be costed. The results usually leave scope for controversy.

cost-benefit analysis

An analysis of a construction contract with the objective of identifying all the included costs and evaluating their benefits.
References in periodicals archive ?
93 (2007); Richard Just, Andrew Schmitz & Richard Zerbe, Scitovsky Reversals in Benefit-Cost Analysis with Normal Goods, 4 J.
The total sum of everything already mentioned subtracted by the capital infrastructure cost of creating the EPZ (CAPt) and the cost of administrative expenditures is the method for calculating the benefit-cost analysis of EPZs [Jayanthakumaran, 2003].
supra note 18, at 13-16 ("Ideally, the values used in benefit-cost analysis would reflect all of the attributes of the risk, including the ambiguity and fear associated specifically with that risk.
Smith, "Developing General Equilibrium Benefit Analyses for Social Programs: An Introduction and Example," Working Paper, Evans School of Public Affairs, University of Washington, Benefit-Cost Analysis Center, March 2011; D.
Fortunately, there are many advocates of Benefit-Cost Analysis who strongly recommend its application for calculating the benefits and costs on the ground that it offers an adequate approach for monetizing the intangible benefits and costs [16,21].
All in all, the absence of a full-blown application of Hayekian analyses to environmental benefit-cost analysis represents a gaping hole in this volume.
Benefit-Cost Analysis compares the value of gains from a project with the value of its costs.
Unlike FTA's current evaluation process, benefit-cost analysis would attempt to monetize all benefits and costs, which experts told GAO would be a more comprehensive approach to evaluating projects.
The Burbank-Glendale-Pasadena Airport Authority voted Monday to extend the original 45-day public comment period on the Authority's Part 161 Study after receiving a letter from the FAA, stating that the agency intends to comment on the study's benefit-cost analysis and asked for a 30-day extension to work on it.
First and foremost, the GFA's three new core classes are designed specifically to address issues such as economic impact analysis, benefit-cost analysis, and public/capital budgeting.
Third, these two perspectives will be brought together within another framework from economic theory, namely that of benefit-cost analysis.